India Lifestyle Retailer Nykaa Eyes $4B Valuation In IPO

India-based lifestyle, beauty, wellness and fashion product eCommerce retailer Nykaa is readying an initial public offering (IPO) that could value the nine-year-old company at more than $4 billion, according to a Thursday (July 29) Bloomberg report citing unnamed sources.

The startup intends to file its draft red herring prospectus, or DRHP, soon, according to the report. A DRHP, according to The Economic Times, is the preliminary registration document drawn up by merchant bankers. The DRHP includes details about the company’s business operations, financials and status in the industry, among other information.

According to the Bloomberg report, Nykaa intends to sell slightly more than 10 percent of the equity, an amount that is expected to raise $400 million or higher. The company sells makeup, skincare, hair care, fragrances, personal care, and health and wellness products from more than 1,200 brands online and in dozens of retail locations.

Nykaa is not the only Indian cosmetics and beauty retailer whose business is on an upward trajectory. As PYMNTS reported previously, global investment firm KKR in June spent $625 million to purchase a majority stake in Vini Cosmetics, with the goal of scaling the startup’s presence in Asia and other markets in the region. The 11-year-old company manufactures, markets and distributes deodorants, makeup and toiletries, which are sold in more than 50 countries. KKR has invested about $5.7 billion of equity in Indian companies over the last 15 years, including JB Chemicals and Pharmaceuticals, Lenskart (an omnichannel eyewear retailer) and small business lender Five Star.

Additionally, as PYMNTS reported last week, India-based food delivery app Zomato Ltd. saw its stocks surge amid its stock market debut. The startup is India’s first food delivery platform to go public in the country. Shares of Zomato surged, netting a 53 percent premium over the offer price and pushing its valuation to about $12 billion.